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Why these 4 ASX shares have sunk lower today

It certainly has been a disappointing day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the index has given back almost all of yesterday’s gains and is down 1.1% to 5,769 points.

Four shares which are falling more than most today are listed below. Here’s why they are deep in the red:

The Orocobre Limited (ASX: ORE) share price has fallen almost 10% to $3.33 amid concerns that lithium supply may increase quicker than expected. Earlier this week the Mineral Resources Limited (ASX: MIN) share price rocketed higher after Deutsche Bank’s site visit to its Wodgina deposit. The broker appears to believe it has the potential to become one of the biggest lithium producers around. The majority of the lithium miners are suffering from heavy declines today.

The Santos Ltd (ASX: STO) share price is down 4.5% to $3.04 following a drop in the oil prices overnight. According to Bloomberg, oil prices fell to a seven-month low overnight after U.S. government data showed a smaller-than-expected weekly decline in domestic supplies. Furthermore, the data revealed an increase in gasoline stockpiles and crude production. I would suggest investors avoid Santos for the time being.

The Watpac Limited (ASX: WTP) share price has plunged 14% to 53 cents after the engineering company downgraded its full-year profit guidance. Cost escalation pressures in the construction sector and other unforeseen market factors means that management expects the company to just about break even this year. Last year Watpac delivered underlying profit before tax of $8.5 million.

The Westpac Banking Corp (ASX: WBC) share price has given back some of its recent gains and fallen almost 2.5% to $30.61. As I wrote earlier, at the current share price I think Westpac is a great option for income investors. After all, currently its shares provide a market-beating trailing fully franked 6.1% dividend.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corp. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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